Monthly Archives: May 2015

Guide to Initial Coin Offerings in Colt, LA

 

Overview of releasing an Initial Coin Offering (ICO) in Colt, Louisiana.

There has been a great deal of confusion on what an initial coin offering is (ICO– also sometimes called a token generation event or token sale), what kinds of business an ICO can be used for, and what goes into introducing an ICO– from a task’s point of view.

Disclaimer: This is not to be interpreted as investment or legal guidance, however rather implied as a template to reveal the process behind an ICO, and what a project’s stakeholders (group, board, stakeholders) need to think about when conducting an ICO.

Offered the blockchain market is reasonably new, there isn’t really a lot of info on the topic (from a project’s viewpoint), and with each new ICO, teams are finding out best practices on what to do and exactly what not to do. Below is a guide of all the info we collected about the ICO procedure, with input from people who experienced the process very first hand.

If you wish to contribute to this guide, or have any ideas, do not hesitate to make recommendations here:.

Pre-planning

The most significant two questions you need to think about first are:.

  • Exactly what is the purpose of the token?
  • Are you sure you wish to do an ICO?

Token: Considerations for 

  • Exactly what is the function of the token?
  • What function or utility does it perform?
  • Is the token absolutely necessary?
  • Why does your task need to be on the blockchain?
  • Can you describe a feasible financial model behind it?

If your application doesn’t need to be built on top of a blockchain procedure, you need to think hard before progressing. For instance, the computational costs of constructing an application on top of Ethereum is a lot more expensive than something like AWS. You have to have a strong reason for why you are building a decentralized application vs. a central application.

If you are uncertain whether your application needs to be built on the blockchain or not, you ought to do more research and spend more time learning about Bitcoin and Ethereum. Building a decentralized application is fundamentally different than an application utilizing client-server architecture, and you’ll need to totally understand the parts of a blockchain and exactly what can be built on top of this brand-new architecture.

{ICO|Initial Coin Offerings in Colt, LA 72326

An ICO is basically different than raising money through VC’s or other traditional means.

On one-hand, you are offering future usage of your platform (not giving up equity). On the other-hand, you are becoming a public company on day one. You’ll have a huge neighborhood you’ll have to manage post-ICO, and you have to make sure you wish to deal with this burden in advance.

Here are a couple of things to remember while thinking through whether your job must do an ICO in the first place:.

  • Everything you do and all the actions you take will be shown in the rate of the token.
  • Your team will get bombarded non-stop, several times a day, with questions about the rate of your token.
    You’ll have to be a global business from day one.
  • All of your internal group conversations will likely be pushed publicly.
  • There will be great tension in trying to construct things that are long-term valuable vs. short-term valuable.
  • If your item isn’t really open sourced currently, there will be a substantial reaction to become entirely open sourced. There is a strong expectation that lots of blockchain tasks are open-sourced tasks.
  • In general, cryptocurrency tasks are way more public/transparent than common start-ups, or perhaps standard public business.

In general, good blockchain projects look and operate much more like open-sourced software application jobs vs. traditional tech services. You and your team will need to decide both whether your application makes sense to be built on a blockchain + you want to run as a transparent and open company.

Marketing is inadequate, people have to understand and trust your abilities.

Many of these early ICO’s were performed by deep stack blockchain developers that belonged to the core crypto community, with high reputation and performance history. The ICOs that sold out quick and fast did not come out of thin air. Early token investors– who by the way were likewise part of the core crypto community– understood these designers well, and trusted them, as their particular item idea had been gone over and peer examined for numerous months over Reddit, Twitter, Slack, Bitcoin Talk, various crypto podcasts, and so on.


Whitepaper

White documents are the business strategies of the Web3 with which teams attempt to raise your funds, frequently before having a prototype. Composing a great whitepaper is the primary job for each group. Avoid contracting out the writing to third parties. If you want people to take you seriously, you have to involve the entire group: from core devs to your sales people. You require a semi-technical description of how your project works and an easy to understand walk through for non-techies. The whitepaper needs to be appealing to investors with no technical knowledge and developers alike. It has to consist of:.

Credible technical roadmap.
Possible organisation roadmap.
Clear tokendistribution model.
You can take your effort one action even more and release a technical paper like the Ethereum’s Yellow paper or Zcash’s technical whitepaper. These papers give a more insight into the technical application and are just aimed at individuals with deep understanding of blockchain technology. They give more reliability to your tech understand how, and enable online swarm evaluation. Technical documents have up until now mainly been used for blockchain token sales and not for dApps token sales.

Prototype – Colt LA 72326

You will be more reliable if you currently have an item model. Encourage people to visit your GitHub page and have fun with the code. Please note, jobs without a single line of code raise many red flags in the eyes of financiers. If your name is not Vitalk Buterin or Gavin Wood– simply using examples here– you may have problems raising money only with a white paper.